BPR is only available on businesses with qualifying trades. So, for example a property holding company would not qualify. However, I like some of the EIS SEIS ideas being mentioned here - especially if they provide capital to fledgling halal businesses. Trust are a good tool but are heavily taxed on their income/gains. A charitable trust is tax efficient and a good tool for sadaqah jaariyah. Pensions are also very IHT efficient in certain circumstances. Good video overall and look forward to more content Inshallah
An excellent video. One more thing that I think is worth adding to the video is that a person's pension is outside their estate for IHT, so it is worth delaying taking a drawdown pension and living off savings and investments for as long as possible (this takes some of the estate out of IHT). The rule changes slightly when a person gets to 75.
Bro I am your Fan from Pakistan.Can you please make a video to review whether investment in B4U Company is halal or haram.I will eagerly wait for your this video.JazakALLAH🙋🙋🙋
@@IFGuru Jazakallah khair. How does it save you tax? If it’s in your will, it’s created on death so is it not the case that before it goes into a trust fund, it will be taxed? Thought the advantage would be to protect assets from potential beneficiaries’ bankruptcy/divorce rather than saving tax. Thanks in advance!
How does a Trust based Will in itself save inheritance tax? Note that once you transfer all your estate into a Trust you have effectively distrubiuted all your inheritance into a Trust ( a legal entity), how Shariah-compliant this action is, is open to debate.
A trust based approach allows you to avail of the tax advantages of inheriting to your spouse but without losing the Islamic distribution. Islamic scholars have got comfortable on this approach and this is the industry standard for many years.
@@IFGuru JazakAllah for your reply. Trust based Wills allow for asset protection, which is one of the main attractions of using such an approach. Trust based Islamic Wills should be considered under certain circumstances but not as a default status. As I said once the deceased's estate is transferred to a Will, the inheritance has been completed and the inheritance rules end. The nearest equivalent to a Trust in Islam is the waqf, you cannot transfer 100% of your estate into a waqf, it is limited to 1/3 of the net estate. The scholars have "got comfortable" with the trust approach because they have been told that this is the only way to distribute the estate according to Shariah. The idea of using trust-based Islamic Wills was initially advocated by those promoting trusts for business purposes.
@@ahussain8581 this exactly... it’s modern Muslims trying to emulate capitalist ideals of tax avoidance...even in death. SubhanAllah. You say “why all your hard work to the tax man?”, like the tax man didn’t fund all the immigrant and low income Muslim families. It’s a shame, and also saying the scholars “got comfortable with it”, means the scholars of the elite who have inheritance to hide. How many scholars in working class areas did they ask to make halal the cheating of tax laws that sustains their communities? Not many I’d wager. SubhanAllah.
@@IFGuru I liked your channel because it helps young Muslims fulfil their right to build wealth...until I came across this one. I think this is literally looking for loopholes in the one of the biggest safeguards shariah has in the saving society from income inequality...generational wealth
